GDP Calculation Methodology Changes

The video discusses changes in India's GDP computation methodology before and after 2015. Key changes include the shift in base year, database from IIP to MCA 21, and calculation from factor cost to market price. The new method is more statistically robust but faces challenges like shell companies inflating GDP figures. The video also highlights the pros and cons of the new methodology, emphasizing the need for accurate data and understanding of production intricacies.

What is the primary focus of the session discussed in the video?

• The influence of literacy rates on GDP

• The impact of foreign companies on India's GDP

• The changes in India's GDP calculation methodology

• The role of agriculture in GDP calculation

What does GDP stand for?

• Gross Domestic Product

• Global Domestic Product

• General Domestic Production

• Gross Development Product

Which database was used for GDP calculation before 2015?

• National Sample Survey Office (NSSO)

• Annual Survey of Industries

• Index for Industrial Production (IIP)

• MCA 21

What is the base year for GDP calculation after 2015?

• 2015-2016

• 2000-2001

• 2004-2005

• 2011-2012

What is a significant issue with the MCA 21 database?

• It excludes foreign companies

• It includes a large number of shell companies

• It only considers agricultural output

• It is not updated regularly

Which sector's inclusion in the database is a major change after 2015?

• Unorganized sector

• Public sector

• Organized private sector

• Agricultural sector

How is GDP calculated after 2015?

• At factor cost

• At market price

• Using only agricultural data

• Based on foreign investments

What was the focus of GDP calculation before 2015?

• Value of production

• Volume of production

• Foreign investments

• Agricultural output

What is one of the pros of the new GDP calculation method?

• It is less complex

• It is statistically more robust

• It excludes shell companies

• It focuses solely on agriculture

What is a con of the new GDP calculation method?

• It excludes organized sectors

• It does not account for production intricacies

• It is less accurate

• It is not statistically robust